External Influences on

Buying Behavior
 External Influences
• Reference Groups

• Family

• Social Class

• Culture
 Group

“A group may defined as two or more

people who interact to accomplish
either individual or mutual goals.”
 Types of Group
• Groups can be classified in a number of ways
like by Structure, Regularity of Contact, Size,
Membership etc.
• Primary and Secondary Group
• Formal and Informal Group
• Membership Group
• Consumer Relevant Group
 Consumer Relevant Group
• The Family
• Friendship Group
• Social Group
• Shopping Group
• Work Group
• Consumer Action Group
 Reference Group

“A reference groups is any person or

group that serves as a point of
comparison (or reference) for an
individual in forming either general
or specific values, attitudes, or
behavior.”
 Reference Group
• Normative Reference Group: these reference
groups influence our broadly defined values
and behavior.
• Comparative Reference Group: these are
benchmarks for narrowly defined or specific
attitudes or behavior.
• Amplified Reference Group: these are people
with whom we don’t interact, but still they
play important role in our decision making.
 Reference Group
• Positive Reference Group: a positive reference
group inspires the members to behave in a
manner coinciding with its values. It has a
positive influence on its members.
• Negative Reference Group : is one which
inspires an individual to behave exactly
opposite to its own values.
 Marketing Applications
• Informational Influence

• Comparative Influence

• Normative Influence
 FAMILY

• “Family can be defined as two or

more persons related by blood,
marriage or adoption who reside
together.”
 FAMILY
• INDIAN FAMILY STRUCTURE
• Joint Family
• Nuclear Family
• Extended Family
• Western Family Structure
• Married Couple
• Nuclear Family
• Extended Family
• Live in Relationship
 FAMILY LIFE CYCLE
• Young Singles
• Newly Married
• Full Nest I (Children below 6 yrs)
• Full Nest II (Children 6-12 yrs)
• Full Nest III (Teenage Children)
• Married Couple Without Children
 FAMILY LIFE CYCLE
• Unmarried Couple
• Young Single Parents
• Middle Aged Single Parents
 Family Roles
• Influencer
• Expert
• Gate Keeper
• Deciders
• Buyers
• Users
• Maintainers
• Disposers
 Functions of Family
• Economic Well Being
• Emotional Support
• Suitable Lifestyle for the Family
• Socialization of Family Member
 Socialization of Family Members -
Children
• Observation
• Co-shopping
• Direct Experience

• Application:
- Child Models
- Children as Influencers
 SOCIAL CLASS

“A group consisting of number of people who

have approximately equal position in society.
These positions may be achieved rather than
described, with some opportunity for upward
or downward movement of other class”
 SOCIAL CLASS

“Social Classes are very broad groupings of

individuals which holds roughly similar status
levels in society arranged in a hierarchy from
lower to upper.”
 Two Level Social Class

• Blue Collar and White Collar

or
• Lower and Upper Class
 Four Level Social Class
• Upper Class

• Upper Middle

• Lower Middle

• Lower
 Five Level Social Class
• Upper Class

• Upper Middle Class

• Lower Middle Class

• Working Class

• Lower Class
 Six Level Social Class
• Upper-Upper

• Lower-Upper

• Upper-Middle

• Lower-Middle

• Upper-Lower

• Lower
 Social Class
Class Social Status Occupational Head % UK
A Upper Higher Managerial, Administrative, 3
Professional
B Middle Middle Managerial, Administrative, 14
Professional
C1 Lower Middle Supervisiors, Clericals, Junior Managerial 27
C2 Skilled Working Skilled manual workers 25
D Working Semi Skilled and Unskilled workers 19
E Lower State pensioners, widows, casual or low wage 12
workers
 Factors Deciding Social Class
• Occupation
• Education
• Income
• Social System
• Lifestyle
• New Wealthy Class
• Mobility
 Applications in Marketing
• Advertising
• Market Segmentation
• Distribution
• Product Development
 CULTURE

“Culture can be defined as a set of learned

beliefs, values, attitudes, habits and forms of
behavior that are shared and are transmitted
from generation to generation within that
society.”

Culture is also called as personality of the

society.
 CULTURE
• Religion
• Rituals
• Culture is shared
• Culture is learned
CHARACTERSTICS OF INDIAN CULTURE
• Liberty and Equality
• Influence of Religion
• Respect of Elders
• Respect to Religious Leaders
• Importance of Cross Culture
• Care of Tomorrow
 INDIAN CORE VALUES VIS-VIS CORE
VALUES OF OTHER MARKETS
• Individualism
• Cleanliness
• Languages
• Work
• Pleasure and Holidays
• Morality and Sex
• Value of Time
 CULTURE AND MARKETING
• Geographical Factor
• Languages
• Religion
• Segmentation
• Advertising